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Ajo in 2024: City with the lowest average housing prices in Arizona
CATEGORY
Top Regions
DATA
Average Home Prices
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Top Regions
Average Home Prices
Ajo, a small unincorporated community in Pima County, Arizona, has emerged as the city with the lowest average housing prices in the state as of 2024. Located approximately 125 miles west of Tucson, this former copper mining town has experienced significant economic shifts that have impacted its housing market. This analysis will explore Ajo's distinction in affordable housing, examining the trends and related factors that contribute to its status.
In 2024, Ajo's average home price stands at $119,036, marking it as the most affordable city for housing in Arizona. This figure represents a notable increase from previous years, yet it remains significantly lower than many other urban areas in the state. The trajectory of Ajo's housing prices over the past two decades provides insight into the economic forces shaping the local real estate market.
Examining the historical data, we observe that Ajo's housing prices have fluctuated considerably since 2000. The town experienced a peak in average home prices in 2008 at $93,279, followed by a sharp decline during the global financial crisis. By 2013, prices had bottomed out at $64,413, representing a 31% decrease from the 2008 peak. Since then, there has been a gradual but consistent upward trend, with prices more than doubling between 2013 and 2024.
Despite the recent increases, Ajo's housing market remains notably affordable compared to state averages. The steady rise in prices since 2013 suggests a slow recovery and potentially increasing demand for housing in the area. However, the rate of increase has been moderate enough to maintain Ajo's position as the most affordable city for housing in Arizona.
Several demographic factors correlate with Ajo's housing market trends. The town's population has seen fluctuations, peaking at 3,933 in 2015 before declining to 2,930 in 2022. This population decrease may have contributed to keeping housing prices relatively low despite the upward trend. Additionally, the median income in Ajo has shown modest growth, rising from $33,176 in 2013 to $41,290 in 2022, a 24.5% increase. This growth in income, while positive, has not outpaced the rise in housing prices, which may explain why the town maintains its affordability.
The employment-to-population ratio in Ajo has fluctuated over the years, with the most recent data showing a ratio of 0.331 in 2022. This relatively low employment rate compared to larger urban areas may contribute to the sustained affordability of housing in the town. Furthermore, the percentage of owner-occupied housing units has increased from 66.8% in 2013 to 70.42% in 2022, indicating a trend towards homeownership that could be driven by the town's affordability.
Ajo's racial demographics have also shifted over the past decade, with the Hispanic population decreasing from 44.68% in 2013 to 33.99% in 2022, while the white population increased from 42.65% to 57.54% over the same period. These demographic changes may reflect broader economic and social trends that influence housing demand and prices in the area.
In conclusion, Ajo's distinction as the Arizona city with the lowest average housing prices in 2024 is the result of a complex interplay of historical, economic, and demographic factors. While housing prices have increased significantly since their post-recession low, they remain affordable relative to other parts of the state. The town's small population, modest income growth, and employment challenges have likely contributed to maintaining this affordability. As Ajo continues to evolve, monitoring these factors will be crucial in understanding the future trajectory of its housing market and its continued status as Arizona's most affordable city for homebuyers.
